What are the applicable non-agricultural land use tax rates in Vietnam?
What types of land are subject to non-agricultural land use tax in Vietnam?
According to Article 2 of the Non-agricultural Land Use Tax Law 2010, the types of land subject to non-agricultural land use tax include:
- Residential land in rural and urban areas.
- Non-agricultural production and business land, including land for the construction of industrial parks; land for the construction of production and business establishments; land for mineral exploitation and processing; and land for the production of construction materials and pottery articles.
- Non-agricultural land specified in Article 3 of Non-agricultural Land Use Tax Law 2010 which is used for commercial purposes.
What are the applicable non-agricultural land use tax rates in Vietnam? (Image from the Internet)
Which entities are required to pay non-agricultural land use tax in Vietnam?
According to Article 4 of the Non-agricultural Land Use Tax Law 2010, the entities are required to pay non-agricultural land use tax are specified as follows:
- Taxpayers are organizations, households and individuals that have the right to use tax-liable land specified in Article 2 of Non-agricultural Land Use Tax Law 2010.
- When organizations, households or individuals have not yet been granted land use right certi-ficates or house and land-attached asset ownership certificates (below collectively referred to as certificates), current land users will be taxpayers.
- Taxpayers in some cases are specified as follows:
+ When land is leased by the State for the implementation of investment projects, lessees will be taxpayers;
+ When persons having land use rights lease land under contracts, taxpayers shall be identified as agreed upon in these contracts. When no agreement on taxpayers is made in contracts, persons having land use rights will be taxpayers;
+ When land has been granted a certificate but is currently under dispute, pending the dispute settlement, current land users will be taxpayers. Tax payment does not serve as a ground for the settlement of disputes over land use rights;
+ When many persons have the right to co-use a land plot, the lawful representative of these co-users will be the taxpayer;
+ When a person having land use rights contributes his/her land use rights as business capital, thereby forming a new legal entity that has the right to use tax-liable land specified in Article 2 of Non-agricultural Land Use Tax Law 2010, the new legal entity will be the taxpayer.
What are the applicable non-agricultural land use tax rates in Vietnam?
According to Article 7 of the Law on Non-Agricultural Land Use Tax 2010 on non-agricultural land use tax rates:
- Tax rates for residential land, including land used for commercial purposes, to be applied according to the Partially Progressive Tariff are specified as follows:
|
Tax grade |
Taxable land area (m2) |
Tax rate (%) |
|
1 |
Area within the set quota |
0.03 |
|
2 |
Area in excess of up to 3 times the set quota |
0.07 |
|
3 |
Area in excess of over 3 times the set quota |
0.15 |
- The residential land quota used as a basis for tax calculation is the new quota of residential land allocation set by provincial-level People’s Committees from the effective date of this Law.
When residential land quotas have been set before January 1, 2012, the following provisions shall be applied:
+ When the residential land quota set before January 1, 2012 is lower than the new quota of residential land allocation, the new quota will be used as a basis for tax calculation;
+ When the residential land quota set before the effective date of this Law is higher than the new quota of residential land allocation, the old quota will be used as a basis for tax calculation.
- Residential land of multi-story buildings with many households, condominiums or underground construction works is subject to the tax rate of 0.03%.
- Non-agricultural production and business land is subject to the tax rate of 0.03%.
- Non-agricultural land specified in Article 3 of Law on Non-Agricultural Land Use Tax 2010 which is used for commercial purposes is subject to the tax rate of 0.03%.
- Land used for improper purposes or land not yet used under regulations is subject to the tax rate of 0.15%. Land of a phased investment project as registered by the investor and approved by a competent state agency will not be regarded as unused land and is subject to the tax rate of 0.03%.
- Encroached or appropriated land is subject to the tax rate of 0.2% and has no applicable quota. Tax payment does not serve as a basis for recognizing taxpayers’ lawful land use rights for the encroached or appropriated land area.
What are the cases of non-agricultural land use tax exemption in Vietnam?
According to Article 9 of the Law on Non-Agricultural Land Use Tax 2010, tax exemption for non-agricultural land use tax is provided in the following cases:
- Land of investment projects in domains eligible for special investment promotion; investment projects in areas with extreme socio-economic difficulties; investment projects in domains eligible for investment promotion in areas with socio-economic difficulties; and land of enterprises with over 50% of their employees being war invalids and diseased soldiers.
- Land of establishments carrying out socialized educational, vocational training, healthcare, cultural, sports or environmental activities.
- Land for the construction of houses of gratitude, houses of great solidarity, establishments nurturing lonely aged people, people with disabilities or orphans, and social-disease treatment establishments.
- Residential land within the set quota in areas with extreme socioeconomic difficulties.
- Residential land within the set quota , of revolutionary activists before August 19, 1945; war invalids of 1/4 or 2/4 grade and people enjoying policies like these war invalids; diseased soldiers of 1/3 grade; people’s armed forces heroes; heroic Vietnamese mothers; natural parents of, or people nurturing, martyrs when they were minors; spouses of martyrs; martyrs’ children eligible for monthly allowances; agent orange victims who are revolutionary activists; and agent orange victims with difficult family circumstances.
- Poor households’ land within the set quota under the Government’s regulations.
- Households and individuals whose residential land is actually recovered in a year under the approved planning or plan will be exempt from tax on the recovered land and the land in the new place of residence in that year. 8. Land with garden houses certified by a competent state agency as historical-cultural relics.
- Taxpayers who face difficulties due to force majeure circumstances if the value of damage related to land and houses on land accounts for over 50% of the taxable price.
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